Rotary Car Parking System is Civil Structure, GST ITC not admissible: AAR [Read Order]

The Tamil Nadu Authority of Advance Ruling (AAR) determined that input tax credit (ITC) is not permissible on rotary car parking systems under Section 17(5)(d) of the CGST/TNGST Acts. \r

Despite the applicant's contention that the system is movable and enhances business, the AAR viewed it as a civil structure akin to multi-story conventional car parking. As per Sections 17(5)(c) and 17(5)(d), which address blocked credits, additions to immovable property fall under ineligible ITC. The AAR held that the rotary car parking system constitutes an addition to immovable property, thus disallowing ITC. \r

The ruling impacts the applicant's ability to claim GST paid on the parking system as input tax credit.